Charitable Gift Annuity

Did you know…

A charitable gift annuity can provide you with tax-advantaged income far greater than CDs, stock dividends or bonds. Not only that, but they generate an immediate charitable income tax deduction upon creation.

Here’s an example:

An 80-year-old woman acquired a stock many years ago for $1,000. The stock had grown in value and was now worth $10,000. She was ready to sell the stock but did not want to pay the capital gains on the $9,000 of growth. In addition, she also wanted to increase her annual income and do something for the community. After discussing her situation, we recommended that she establish a charitable gift annuity with the stock. By doing this, she achieved the following results:

  • An 7.5% annuity for her entire life ($750, per year). If she lives for 12 years, the annuity payments together with the benefit of the tax deductions exceed her original contribution.
  • An immediate charitable income tax deduction of $4,780.
  • Deferral of the capital gains tax on the stock.
  • Upon her death, an endowment will be created within the Foundation that will permanently support the community upon her passing.

Foundation Charitable Gift Annuity

Example of Single-Life $10,000 Gift Annuity

September 2021 AFR 1.2%

AgeRateTotal Annual PaymentTax-Free PaymentImmediate Tax Deduction

If a donation scenario like this one sounds appropriate for you, the Jewish Community Foundation has the experience and technical expertise to help. The Jewish Community Foundation can:

  • Simplify the process of contributing highly-appreciated, non-publicly traded assets
  • Help you realize the most favorable tax consequences with the greatest charitable impact
  • Work with you and your advisor to prepare and plan for contributions in advance of a liquidity event

Contact your experts in Jewish Philanthropy to learn more.

Daniel O. Brandeis, J.D., LL.M.

Daniel O. Brandeis, J.D., LL.M.

Foundation Director


Sharon Perelman

Sharon W. Perelman, Esq.

Director of Planned Giving & Associate Foundation Director


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